Question

Larry is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Larry has only 20 hours this week that he can devote to training. Each hour he spends swimming is an hour that he can't spend biking or running. Which basic principle of individual choice do these statements best illustrate?

Answer 1

Answer:

B. People face trade-offs.

Explanation:

According to a different source, these are the options that come with this question:

A. Larry can use time most efficiently by spending the same amounts of time on swimming, biking, and running.

B. People face trade-offs.

C. People usually exploit opportunities to make themselves better off.

D. Larry has an incentive to spend more time on swimming than on biking or running.

The basic principle that these choices illustrate is that people face trade-offs when trying to decide what the right course of action is at any particular moment. In this example, Larry has three tasks that he needs to complete: swimming, biking and running. However, dedicating time to one of this leads to less time for the other ones. Therefore, Larry faces a trade-off. This concept is closely related to the idea of opportunity costs.